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Power of Attorney
"I need a power of attorney document granting my sister authority to manage my financial affairs, including banking and real estate transactions, for a period of 2 years starting January 2025."
What is a Power of Attorney?
A Power of Attorney gives someone legal authority to act on your behalf in the Philippines. This written document lets you (the principal) appoint a trusted person (the attorney-in-fact) to handle specific tasks like signing contracts, managing property, or making financial decisions when you can't be present.
Under Philippine Civil Code provisions, you can create either a general Power of Attorney for broad decision-making powers or a special one for specific transactions. It remains valid until you revoke it, become incapacitated, or pass away - unless you've specifically made it "durable" to continue even if you become incapacitated.
When should you use a Power of Attorney?
You need a Power of Attorney when you can't personally handle important transactions in the Philippines. Common situations include managing property while abroad, conducting business deals across provinces, or handling bank matters during extended travel. It's especially vital for overseas Filipino workers who need family members to manage their affairs back home.
Many Filipinos use this legal tool when buying property, settling insurance claims, or dealing with government agencies. Getting it notarized before leaving the country saves time and prevents delays in urgent transactions. For business owners, it helps delegate signing authority to trusted managers during international business trips or extended absences.
What are the different types of Power of Attorney?
- Affidavit Of Support And Consent And Special Power Of Attorney: Combines support declaration with specific powers for immigration matters, often used by OFWs or visa applicants
- General Power of Attorney: Grants broad authority to handle most financial and legal matters, ideal for long-term overseas assignments
- Special Power of Attorney: Limits authority to specific transactions like property sales or vehicle registration
- Durable Power of Attorney: Remains valid even if you become incapacitated, crucial for estate planning
- Limited Power of Attorney: Sets time restrictions or transaction limits, common in temporary business arrangements
Who should typically use a Power of Attorney?
- Principals: Philippine citizens or residents who need someone to act on their behalf, including OFWs, business owners, and elderly individuals
- Attorneys-in-fact: Trusted representatives like family members, business partners, or professional agents who execute the authorized tasks
- Notary Public: Legal professionals who authenticate Power of Attorney documents, ensuring their validity under Philippine law
- Government Agencies: Bodies like the Land Registration Authority or Bureau of Internal Revenue that accept and process POA transactions
- Banks and Financial Institutions: Organizations that require POAs for account management and financial transactions
How do you write a Power of Attorney?
- Identity Details: Gather complete names, addresses, and valid IDs of both principal and attorney-in-fact
- Scope Definition: List specific powers being granted - our platform helps ensure all critical authorities are properly described
- Time Frame: Decide if the POA needs an expiration date or specific duration of authority
- Document Requirements: Prepare two valid government IDs and proof of address for notarization
- Witnessing Plan: Arrange for two witnesses who aren't related to either party
- Notary Schedule: Book an appointment with a Philippine notary public for document execution
What should be included in a Power of Attorney?
- Title and Declaration: Clear statement identifying it as a Power of Attorney with principal's intent
- Principal Details: Full legal name, address, and civil status of the person granting authority
- Attorney-in-fact Information: Complete identification and contact details of chosen representative
- Powers Granted: Specific enumeration of authorized acts and transactions
- Duration Clause: Clear statement of when powers begin and end
- Revocation Terms: Conditions for canceling or modifying the agreement
- Attestation: Signatures of principal, attorney-in-fact, and witnesses with proper notarization
What's the difference between a Power of Attorney and an Agency Agreement?
A Power of Attorney differs significantly from an Agency Agreement in several key aspects, though both involve delegating authority. While they may seem similar at first glance, understanding their distinct features helps choose the right document for your situation.
- Legal Relationship: A Power of Attorney creates a principal-attorney relationship for specific actions, while an Agency Agreement establishes an ongoing business relationship between principal and agent
- Scope of Authority: POAs typically grant authority for particular transactions or time periods, whereas Agency Agreements create broader, long-term business representations
- Termination Rules: POAs automatically end upon the principal's incapacity or death (unless durable), but Agency Agreements can survive these events and require formal termination
- Commercial Purpose: Agency Agreements usually involve business operations and compensation terms, while POAs focus on personal or legal matters without necessarily involving payment
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